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Take Charge in Getting the Best Auto Insurance Rate


Most consumers believe that getting the best auto insurance rates depends on the company they will find. Only few know that they can control the rate of their premiums.

The auto insurance industry has plenty of things to consider when appraising your policy. Knowing how it works will help you save more money by getting the best auto insurance rates.

Your credit history can increase or decrease the price of your auto insurance. You can impress your insurers if you maintain the same credit card accounts for a long time and pay bills on time. They will interpret this as you having a good financial behavior. Insurance companies use this to evaluate your insurance-risk score.

If you do not have an impressive credit history, try to first clear your bad credit activity before applying for car insurance.

In getting the best auto insurance rates, make sure that you have the right car. Unknown to clients, insurers have a rating system for cars and its models. They fashion their ratings after the Insurance Services Office’s system. Vehicle’s cost, safety and theft data are included when determining the ratings. Rating scores are from 1 to 27. If your car gets a high score, your policy premium increases.

If you are planning to buy a new car, ask an insurance agent about the premium of the vehicle you want to buy. Search online for updated lists of automobiles which are cheap to insure. It will give you an idea which vehicle to buy.

Even if it is your first mishap, your premium will increase to as much as 40 percent of the insurance company’s base rate when you figure in an accident. Some firms do not apply the same percentage increase, but your individual rate will still go up.

However, not all insurance companies have this kind of policy. Before signing for an auto-insurance contract, be sure to ask your agent if they have a policy that forgives the first accident. Some insurance company will ignore your first accident and will not increase your premium.

To get the best auto insurance rates, pay your insurance in full if you can afford it. Most insurance firms give discounts to clients who prefer paying their annual premiums in full.

Fractional premium fees are applied for those who prefer installments. Payment schemes are usually on a six-month, quarterly or monthly basis. The more you break up the payment, the more fees will add up to your premium.

If you opt for an installment scheme, make sure that you will pay on time. Some companies will charge you additional fees for arrears, or worse cancel your policy.